The transaction forms part of the development of Ratos into a group of companies with a focus on profitable growth.
- Ratos is selling the data and analytics company Bisnode to Dun & Bradstreet for a purchase price based on an approximate enterprise value of SEK 7,200m, representing an EV/EBITA multiple of 13,8x.
- The sale of Ratos’s 70% shareholding corresponds to an approximate equity value of SEK 3,900m, representing a Group capital gain of about approximately SEK 2,000m. In addition, Ratos will receive a dividend from Bisnode during the fourth quarter 2020 amounting to SEK 175m.
- 25% of the equity value comprises of shares in Dun & Bradstreet, listed on the New York Stock Exchange. Ratos’s CEO, Jonas Wiström, will join the Dun & Bradstreet International Strategic Advisory Board.
- Bisnode has doubled its profitability over the past four years. The transaction enables increased growth through Dun & Bradstreet’s international reach and expanded global customer base.
- The transaction is an additional step in the development of Ratos and will create the financial conditions for accelerating profitable growth and acquisitions.
Ratos AB (“Ratos”) has signed an agreement to sell its entire 70% holding in Bisnode AB (“Bisnode”), excluding the business operations in Belgium, to Bisnode’s partner Dun & Bradstreet for an approximate enterprise value of SEK 7,200m, corresponding to an EV/EBITA multiple of 13,8x and an approximate equity value of SEK 3,900m. In addition, Ratos will receive a dividend from Bisnode during the fourth quarter 2020 amounting to SEK 175m. 75% of the equity value comprises a cash consideration, and 25% of shares in Dun & Bradstreet Holdings, Inc., corresponding to approximately 1% of shares outstanding. Bonnier is also selling its 30% stake in Bisnode to Dun & Bradstreet. The transaction is subject to customary regulatory approval and is expected to close by early 2021.
“This is a good deal for Ratos, which also means that we release capital and can increase the pace of our business plan with the aim of investing in organic growth and margin growth in the existing portfolio as well as add-on and potential new acquisitions. The sale is an important step in the transformation of Ratos into a company group with a focus on profitable growth”, says Jonas Wiström, President and CEO of Ratos.
Bisnode has undergone a successful development process over the past four years with a focus on an improved customer offering, stability and profitability. During that time, the operating margin has doubled from 7% to 14% for a rolling 12-month period. Future growth aimed at reaching a leading position will require Bisnode’s participation in the ongoing consolidation of an increasingly global data and analytics market, benefitting from Dun & Bradstreet’s global scale, expertise and market leading solutions.
“Ratos’s transformation into a focused company group is based on the premise that we will own companies that are, or can become, market leaders. In Bisnode’s case, we do not have the possibility to invest in the creation of a market-leading position in the market for data and analysis on our own. We would prefer to participate in the consolidation together with a global leading partner that can realise major synergies with Bisnode, which we are enabling via this transaction. It also feels satisfying to have found a good solution considering the interdependence that Bisnode has had to Dun & Bradstreet since 2003 as a reseller”, says Jonas Wiström.
Dun & Bradstreet is a leader in the industry for data and analysis and their modern Finance and Risk Solutions and Sales and Marketing Solutions account for an increasing share of Bisnode’s sales and currently amounts to approximately 33%. The companies have had a close cooperation for two decades and complement each other well geographically. Bisnode holds a strong position in Northern and Central Europe, while Dun & Bradstreet is a market leader in the US and holds a leading position in several international markets including a strong position in the United Kingdom. The merger will make Bisnode a natural platform for Dun & Bradstreet in Northern and Central Europe, while creating opportunities for achieving economies of scale in such areas as sales, product development, data sources and analytics.
Other financial information
After the closing date, Ratos’s ownership in Dun & Bradstreet will be approximately 1%, corresponding to approximately SEK 1,000m based on Dun & Bradstreet’s volume weighted average closing price over the past 20 trading days until 6 October 2020.
The enterprise value of Bisnode’s Belgian operations is SEK 42m, but this has not been included in the transaction since the company differs sharply from Bisnode’s other operations and does not offer synergy opportunities for Dun & Bradstreet. Ratos intends to divest the business separately.
Ratos continued development towards a group of companies with a focus on profitable growth
Over the past two years, Ratos has been focused on stabilising the Group and increasing the profitability of its companies. At 30 June 2020, EBITA on a rolling 12-month basis was SEK 1,573m (SEK 829m). In the first half of 2020, 11 of 12 companies in the company group showed improved earnings.
Ratos’s management believes that there is scope for improving profitability and organic growth within the company group. Several companies have achieved stability and a level of profitability that also enables growth through acquisitions. The sale of Bisnode will create the financial conditions for implementing the add-on and potential new acquisitions that form part of the plan for the continued development of Ratos.
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Press and video/teleconference
At 10:00 a.m. on Thursday, 8 October, Jonas Wiström (President and CEO) will hold a press and video/teleconference. The press conference will be held at Ratos’s head office (Drottninggatan 2, Stockholm, Sweden). Only pre-registered participants may participate in person. Participation can be registered by sending an e-mail to anna.ringberg@ratos.com. Please note that the number of places are limited due to Covid-19.
To participate in the video/teleconference, call +443333009263 or +18338230589 or follow this link https://tv.streamfabriken.com/2020-10-08-press-conference. The presentation material is available on Ratos’s website: www.ratos.com.
In connection with the press and telephone conference, Stephen C. Daffron, President Dun & Bradstreet, will present his view on the transaction and be available for questions.
This is information that Ratos AB is required to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, on 8 October 2020 at 05.45 a.m. CEST.
For further information, please contact:
Jonas Wiström, CEO Ratos, +46 70 868 40 50
Helene Gustafsson, Head of IR and Press, +46 70 868 40 50, helene.gustafsson@ratos.com
About Ratos:
Ratos is a business group consisting of 12 companies divided into three business areas: Construction & Services, Consumer & Technology and Industry. In total, the companies have SEK 38 billion in sales and EBITA of SEK 1.8 billion. Our business concept is to develop mid-sized companies headquartered in the Nordics that are or can become market leaders. We enable independent mid-sized companies to excel by being part of something larger. People, leadership, culture and values are key focus areas for Ratos. Everything we do is based on Ratos’s core values: Simplicity, Speed in Execution and It’s All About People.
About Bisnode
Bisnode is a leading European data and analytic company. The company helps organisations to find and manage customers throughout the customer’s life cycle. With Bisnode’s Smart Data approach, companies can increase their revenue and minimise their losses. Bisnode is Dun & Bradstreet’s largest strategic alliance partner. The Group has its head office in Stockholm, and 2,100 employees in 19 countries. At 30 June 2020, sales on a rolling 12-month basis amounted to SEK 3,754m and EBITA was SEK 522m. 1/3 of revenue is derived from the company’s strategic partner Dun & Bradstreet.
About Dun & Bradstreet
Dun & Bradstreet, a leading global provider of business decisioning data and analytics, enables companies around the world to improve their business performance. Dun & Bradstreet’s Data Cloud fuels solutions and delivers insights that empower customers to accelerate revenue, lower cost, mitigate risk, and transform their businesses. Since 1841, companies of every size have relied on Dun & Bradstreet to help them manage risk and reveal opportunity.
